Institutional wealth – pension funds: The next generation

By Katie Llanos-Small A decade ago, administering a pension fund in Mexico was a relative cinch. The recipe was straightforward: throw 85% of your assets into government bonds, and go for lunch. It was an easy decision for the fund managers. With investments in equities, real estate funds, commodities and international debt all banned, they had little choice.
Back then, the funds were already growing quickly. Indeed, they had nearly tripled in size in three years. But at around 350 billion pesos in May 2003, the pension pot was not raising any concerns.
Today, however, the stakes are higher. Mexico’s pension funds have experienced a giddying rise in their asset pools. Assets of the Afore